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Why the economy feels bad right now

Today, Explained

The Stock Market, Is It a Goldilocks Period?

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There is this idea that, because inflation had been falling and low for a really long time, by this goldilocks period of the teens, that everybody expected low inflation. And those low inflation expectations contributed to the persistently low inflation. If people expect there to be high inflation, they will change their behavior. Companies might build incremental price increases into long term contracts. Workers, you know, to the extent they have bargaining power, will demand more raises.

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